Passenger Decision Making Behavior and Implications for ...

Passenger Decision Making Behavior and Implications for Airline Marketing: Case Emirates

Bachelor Thesis for Obtaining the Degree Bachelor of Business Administration Tourism and Hospitality Management

Dr. Ulrike Bauernfeind

Robert Wilfing

0911562 Vienna, 29/05/2012

Affidavit

I hereby affirm that this Bachelor's Thesis represents my own written work and that I have used no sources and aids other than those indicated. All passages quoted from publications or paraphrased from these sources are properly cited and attributed.

The thesis was not submitted in the same or in a substantially similar version, not even partially, to another examination board and was not published elsewhere.

Date

Signature

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Acknowledgement

First I would like to express my utmost gratitude to Ms. Dr. Urlike Bauernfeind and thank her for her continued supervision, wonderful support and valuable advice. I consider it an honor to have had the opportunity to work with Emirates and I am especially thankful for the advice and valuable input from the Area Manager Austria, Slovakia and Hungary Mr. Martin Gross, Austria's Sales Manager Mr. Anton Bily and Austria's Sales Coordinator Ms. Elisabeth Schmon who supported my research for this thesis right from the beginning. It would not have been possible to conduct this survey without the support of Emirate's Airport Manager Mr. Karl-Heinz Gallus. I furthermore would like to thank Ms. Jessica Keck for her kind support during the survey process.

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Abstract

The airline industry is facing tremendous changes linked to advances in Information and Communication Technologies which revolutionize consumer behavior by enhancing the availability of information and simplifying the booking process. Though success for airlines lies in understanding changing needs of customers little research has been done on the decision making process of passengers. The aim of this paper is to explore how passengers prefer to obtain information, which information sources they perceive as trustworthy, which distribution channels are used for bookings and the evaluation of distinct product attributes. The Arabian carrier Emirates was selected for an indepth analysis, and a survey among Emirates' passengers was conducted in order to obtain up-todate insight into their decision making behavior. Results show that passengers carry out extensive information searches and stress the need for integrated marketing communication. A trend towards disintermediation and re-intermediation was observed. As far as specific product attributes are concerned, Emirates' passengers place the most importance on safety, punctuality, staff and the seat pitch. Recommendations for Emirates and any other carrier include a proactive approach towards new Information and Communication Technologies and their integration as marketing tool.

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Table of Contents

Affidavit ................................................................................................................................................... 2 Acknowledgement................................................................................................................................... 3 Abstract ................................................................................................................................................... 4 Table of Contents .................................................................................................................................... 5 List of Tables............................................................................................................................................ 8 List of Figures........................................................................................................................................... 8 List of Abbreviations................................................................................................................................ 9 1 Introduction................................................................................................................................... 10 2 Historical Background of the airline industry................................................................................ 11 3 Product Analysis in Airline Marketing ........................................................................................... 12

3.1 Definition of the Airline Product ........................................................................................... 12 3.2 The Extended Marketing Mix Analysis for Services............................................................... 12

3.2.1 Product .......................................................................................................................... 12 3.2.2 Price............................................................................................................................... 13 3.2.3 Place .............................................................................................................................. 14 3.2.4 Promotion...................................................................................................................... 15 3.2.5 People............................................................................................................................ 16 3.2.6 Physical Environment .................................................................................................... 17 3.2.7 Process........................................................................................................................... 17 3.3 The Leisure Market................................................................................................................ 18 3.4 The Business Market ............................................................................................................. 18 4 Consumer Behavior ....................................................................................................................... 20 4.1 Consumer Decision Making Process...................................................................................... 21 4.1.1 Consumer Decision Making Process: Information Search............................................. 21

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